23. Direct debiting
If direct debiting of premiums is agreed in the schedule, the party liable of paying the premiums will provide the insurer with a letter addressed to his / her bank, giving the appropriate orders to this end.
The premium will be considered as having been paid on its due date, except where the relevant amount cannot be debited to the account of the liable party, within the grace period of one month established under the Insurance Contracts Act, as a result of insufficient funds. In this case, the insurer will notify the policyholder, who will be obliged to make the premium payment at the insured's last registered address.
Should the insurer allow the grace period to elapse without sending the bill for the due premium, and should there be insufficient funds in the account when it does so, it will duly notify the party liable for the payment by registered mail or any other indisputable means, granting him/her a new period of one month to pay the amount at its registered offices or at one of its regional offices, branch offices or agences. This period will begin upon receipt of the notice at the last address for the policyholder reported to the insurer.